The Texas SB 1588 introduces significant changes to how HOAs operate across the state. It clarifies homeowner rights and updates association duties under the current Texas Property Code. Both homeowners and board members need to understand what these changes entail.
What is Texas SB 1588?
The Texas Senate Bill 1588 is a law that updates the powers and duties of homeowners associations, known as property owners’ associations in the state. It took effect on September 1, 2021.
The bill aims to improve existing laws that protect homeowner rights and regulate HOA responsibilities. It includes transparency mandates, limits on fees, credit reporting rules, rights around religious displays, security measures, and management certificate filings.
SB 1588 seeks to balance the rights of homeowners with association management needs. It clarifies what associations must file, how they enforce rules, and how they handle disputes. The law ensures HOAs follow specific processes before enforcing liens, issuing fines, or restricting homeowner displays.
Can an HOA Still Restrict Homeowner Practices Under SB 1588?
Under SB 1588, HOAs may not bar owners from displaying religious items on their property. That means homeowners can affix religious symbols unless those displays pose a safety risk, break a law, or are otherwise offensive beyond their religious nature.
Homeowners also receive the right to install security measures without requiring pre‑approval. This includes security cameras, motion sensors, or pool perimeter fences on their property. Associations may still regulate the location and type of fencing or sensors, especially outside the owner’s exclusive property.
Key Points in Texas Senate Bill 1588
SB 1588 amends several key points under the Texas Property Code, including the following:
1. Filing of Management Certificates
Associations must file a management certificate with both the county clerk in each county where the subdivision lies and with the Texas Real Estate Commission (TREC). If an association fails to properly file or update a certificate within 30 days of a change, it loses its authority to collect regular fees.
The HOA must file an amended certificate electronically with TREC no later than seven days after county recording. Meanwhile, the county recording must happen within 30 days of notice of change.
The goal of these filings is to build a public database for HOAs. This makes it easier for homeowners and prospective buyers to verify the status of an association.
2. Restrictions on Liens and Assessments
If the HOA fails to file the management certificate, it may not enforce liens based on assessments. Any obligation accrued before filing is invalid if a bona fide purchaser acquires the property.
The law protects buyers and limits HOA liability for attorney fees or interest in those gaps. This rule encourages associations to stay current with filings and ensures fairness if an HOA misses a deadline.
3. Limits on Resale Certificate Fees and Delivery Time
SB 1588 caps resale certificate fees at $375. Any update to that certificate is limited to $75. The HOA must deliver a resale certificate within five business days after a second written request.
If it misses that deadline, homeowners may seek damages up to $5,000 plus costs and attorneys’ fees. This speeds up real estate transactions. It also limits unfair delays or excessive charges.
4. Consumer Protections for Credit Reporting
The law limits when an HOA can report delinquencies to credit bureaus. Associations must give at least 30 business days’ written notice before reporting unpaid fees or fines. They must also give homeowners a chance to enter a payment plan.
Additionally, the HOA can’t report a debt if the charge is in dispute. The association may also not charge extra fees for reporting actions. This establishes due process and prevents immediate damage to credit over unpaid fees.
5. Architectural Review and Appeal Rights
SB 1588 sets rules for architectural review committees. Associations with more than 40 lots must ensure that no board member, spouse, or household member serves on the review committee.
If a homeowner’s appeal receives a denial, the board or committee must provide written notice and hold a hearing. The homeowner may then present evidence and appeal in writing or oral form.
Furthermore, the HOA must provide documents at least 10 days before the hearing. If the packet is late, it must be granted a postponement. These provisions ensure a transparent and fair review process of architectural requests.
6. Security Measures and Pool Enclosures
The law prohibits HOAs from banning certain safety-related installations. This includes security cameras, perimeter fences, and pool enclosures built with transparent mesh in metal frames up to six feet tall.
Associations may still regulate the appearance of these installations and placement styles. That said, they may not prohibit black mesh fences, motion sensors, or cameras on the owner’s private property.
7. Transparency of Governing Documents
Associations with at least 60 lots or those contracted with management companies must post current governing documents online. This includes the CC&Rs, bylaws, and rules.
Members must have the ability to access these documents easily. This promotes transparency and accountability, while supporting homeowner education.
8. Open Meetings and Contract Bidding
Budget amendments now require a public meeting. Associations must conduct these in open sessions, which means all homeowners have a right to attend.
Large association contracts over $50,000 must also trigger competitive bidding requirements. With these provisions in place, there is a reduced risk of conflict, mismanagement, and poor financial oversight.
How to Update HOA Policies After SB 1588
Associations must revise their governing documents and internal policies to comply with the new law. Boards should review files and update procedures for the following:
- Timely filing of management certificates with the county and TREC
- Fee limits and delivery procedures for resale certificates
- Written notice, timing, and dispute process before credit reporting
- Procedures for architectural review, hearing packets, and appeals
- Rules around the installation of security measures and pool enclosures
- Posting of governing documents and resale certificates online
- Open meeting protocols for budget changes
- Competitive bidding policies for large contracts
- Restrictions on board member participation in review committees
- Notice to owners before fines, liens, suspensions, or credit reports
A Helping Hand
Texas SB 1588 changes how homeowners associations operate across the state. It improves transparency, promotes accountability, and protects the rights of residents. The bill does include many amendments, making it difficult for self-managed boards to keep up. This is where a professional HOA management company can come in.
Preferred Association Management Company offers exceptional HOA management services to communities in Central Texas. Call us today at 512-918-8100 or contact us online to learn more!
RELATED ARTICLES:
